Senior officials in Tamil Nadu have begun preliminary discussions on whether liquor retailing, currently handled by the state-run TASMAC, should be privatized on the lines of neighbouring states, sources said.
The talks come after Chief Minister Vijay, soon after taking office, ordered the closure of 717 liquor outlets said to be causing inconvenience to the public. The outlets have since been shut.
Officials said TASMAC currently manages liquor sales across the state, with average monthly sales of about 50 lakh cases of liquor and 35 lakh cases of beer. They alleged that procurement patterns—where higher-selling brands are purchased more—encourage liquor manufacturers to influence counter sales through bribes, leading to corruption across multiple stages from production to retail.
According to the sources, a recent meeting involving officials from TASMAC, Home, Finance and Prohibition and Excise departments, along with the Chief Minister’s Office and ministers, discussed five broad steps. These included breaking the existing syndicate of 11 liquor makers and five beer makers, widening the market by allowing more products from other states and countries, considering tax reductions, curbing illicit liquor, and strengthening oversight to eliminate corruption from procurement to sales.
Officials also noted that privatization could trigger public dissatisfaction, and suggested that the Chief Minister may need to explain that government-run liquor retail is not ideal. However, no decision was made at the meeting, and the matter is to be discussed further with the Chief Minister before a final call.
